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tv   Bloomberg Markets Americas  Bloomberg  March 20, 2017 2:00pm-3:31pm EDT

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aware of a foreign advisor to the trump administration? dir. comey: i'm not going to comment. trump you aware that mr. -- the fbi knew of him because of a $40 million $40 million stk fraud case prosecuted by the federal government? dir. comey: same answer. >> you have been watching coverage of fbi director jim comey testifying about russia cost involvement in the presidential election. we wanted to take it to the white house where sean spicer is holding his daily briefing. >> i will try to have more of a readout. i know they will talk extensively about what they're going to accomplish. japan, south korea. i will let the secretary of state brief the president before i get ahead of deciding what was
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discussed in beijing. >> you said in the case of the president's tweets that this is an ongoing investigation and more people may come out. sean: right. >> why is that sufficient to stay in one case that there was no particular ruling collusion but the other case, you need more information? sean: i think there's a difference. i'm not ruling anything out. i'm merely explaining to you that every person, republican, --ocrat, old, administration the obama administration. in terms of what? itself, westigation know from the people who have been briefed on the other piece of it. it is an ongoing thing. even according to the department of justice in terms of the information that is been provided, they are still at the
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beginning of this process. it is a very different thing than a group of people saying there is an ongoing investigation. there is no evidence to suggest any type of collusion. >> president trump has made at least 10 trips to the golf course. he regularly used to criticize president obama for spending time on the golf course. how is it any different? it as an saw him use opportunity with prime minister abe to help foster deeper relationships in southeast asia and have a growing relationship. how he uses the game of golf is something that he talked about. secondly, we went to a cabinet meeting two weekends ago down at his club in virginia. conclusioned to the
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that he was playing golf. on a couple of occasions, he has conducted meetings there or had phone calls. just because he has there doesn't mean that is what is happening. >> i know he met with prime minister abe on the course but we're not getting details. why isn't the president and his aides being more forthcoming about what he's doing? because the president is entitled to a bit of privacy at some point. and the pressress is entitled to a bit of privacy as well. does the president believe the fbi will do a fair job of investigating any links to russia? >> there are a variety of institutions looking at it. i think that when you get to the bottom of it, we will have a
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much better picture of what is happening and will continue to vindicate him. >> the president tweeted a question about potential dnc connection to russia. is he under the impression that the clinton campaign had inappropriate contact with russia? sean: an interesting aspect of this has not been covered. the dncal occasions, was asked by the fbi to allow their servers to be looked at. despite all the claims about leaking. why wouldn't they rebuff the fbi? why were they not wanting -- if were so concerned, while they not asked the fbi to look? what are they hiding? what are they concerned about?
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they are very clear about the concerns that they have as well as all of the leadership in the democratic party. and when it came to hacks and leaks out of the dnc, they are quick to jump to the conclusion about who did it and wouldn't allow the fbi to investigate it. there is a second set of concerns here in terms of hillary clinton's role. in terms of donations that the clintons received from russian entities. that they sold off a tremendous amount of uranium to the russian government. where was the concern for that? it was the obama administration in 2009 that talked about a reset with russia and a desire to reset relationships. it was hillary clinton that signed off on the deal that gave the russian company 1/5 of the u.s. uranium supply.
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what did they get? there was a discussion about the russian official noting both campaigns. where is there efforts on the hillary clinton thing. they are quick to point fingers and when it comes to discussing their own collusion or questions involving their involvement with russian officials, there is no discussion there. you've got to wonder on both sides, where is the parity when it comes to these kind of investigations. >> [inaudible] director of the fbi tweeting about -- talking about him tweeting about wiretapping. it's not a question of a day, it is when we get answers. how does an american citizen who
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should be protected by law from having their identity unmasked, how does that happen? relevantnd all the intelligence agencies, they can figure out who it was. hold on. throughout the 2016 election and the transition. and when you look at someone like michael flynn and realize that while they might've been looking at somebody else at that time, how to somebody's name that is protected get put out in the public? because the people in the intelligence community would've had access to that information. why wasgot to question, a name that should've been protected by law put out there? were with the motives behind that?
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>> are you saying the president to evidence that we don't have? >> i'm saying there are a lot more questions that need to get asked about what was being done in terms of surveillance. , why are certain people being unmasked? what was going on? there's a lot more questions than answers. who does the president trust to provide those? sean: and we have talked about this ad nausea am that the house and senate intelligence committees are looking into this. today is the first of several hearings that the chairman intends to call. i get you guys want to know the end of the book right now but we are on the first chapter of this process. we put out a statement saying that we have to look into it.
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we have noted multiple times that is where the president believes the appropriate place is for all of these documents to go through. of meetings over the weekend with north korea -- about north korea. who were those meetings with? we continue to be concerned with north korea's activity. we had conversations with officials in japan and south korea and continue to urge china to step in and play a larger what is thermining ballistic and other missile threat that north korea played. i will try to have a further read out on some of those conversations. there is a growing concern about north korea and i think that is part of what secretary tillerson will be discussing during the meeting. >> i think you sent a very clear signal that his policy is over.
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the president and secretary of state has an expectation that china employed multiple points of pressure on north korea. as the state department noted, both the president and secretary areerson agreed that there opportunities for greater cooperation between china and the united states, acknowledging that there will be differences. i think that the follow-on meetings that the leaders intend to have will be helpful in that gain. >> given the priorities for the american tax dollars that the need to cut programs or make cuts to programs like meals on wheels and art, it will the president consider curbing some of his trips to mar-a-lago that could cost $3 million
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to palm beach, could he cut that back for the american tax dollars? sean: that is a vast reach. a presidents always travel. , he carries he goes the apparatus of the white house with us. to president will continue travel around the country and have meetings to solve the nation's problems. i know you took a little bit of a shot there, i think even the washington post which is no friend to conservatives, even they said that these false narratives on meals on wheels -- it is not a federal program. budget comesotal from block grants. the state program had a phenomenal weekend this week. narrative.t you have been listening
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to press secretary sean spicer answering questions from the press corps. pushing about the presidents allegedly asked to russia. alleged lin to russiaks. staff with a campaign in currently in relations with russian officials throughout that process. let's get back to testimony on capitol hill. they confirm the bureau is probing those ties between the donald trump campaign and russia. kevin is standing by on capitol hill with the highlights. kevin, we know they have refuted trump's allegations of wiretapping by his predecessor and are looking into connections between russia and the president . which is the more important piece of news? outside ofstanding the house intelligence committee
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where the hearing is currently underway. republicans also focusing on top officials. james comey facing tough questions not only from democrats but also from republicans. that is where this gets interesting because the less presidentcapital the will have trying to get across other key areas of legislative agenda. it will be a tough vote, to say the least. i spoke with a senior aide. they will be on capitol hill tomorrow, meeting with house republicans to talk about health care. but there is no question president trump is going to face questions during that meeting about this hearing. make, and point i would thatsenior former member
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told me that they are not worried about this hearing. themselvesstancing from what they are arguing is a little more than just accusations at this point. the fbi director is testifying before house intelligence committee as we speak. that there is an open investigation. that is only going to continue this ongoing saga. and sean spicer in his daily briefing said that the hearing today showcased the ongoing problem of leaks. there's no reason to believe the president lacks any confidence in james comey. i know james comey had said that folks should not draw conclusions from the fact that he may not be able to comment on certain topics. to what extent are his answers no comment? i think the broader take away from this hearing is that the f e i'd erect or is saying that there is an open investigation.
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regardless ofat what political side of the aisle you are on, there is an open investigation. they reiterate the fact that there are some unanswered questions to say the least. when you talk with inside sources, you talk with senior congressional aides, even folks who are more in line with president trump's message and agenda, there is growing concern that this will only continue to hurt him as he looks to get through a broad host of other issues. i have covered hearings on nothinghill and it is new that someone testifies before the committee would look to dodge questions. is that thereay is an open investigation still ongoing. chief washington correspondent from bloomberg news. scarlet: let's get back to the markets and the outlook for
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small-cap stocks under the fiscal policies of president trump. joining us is portfolio manager of the barren discovery fund ranked number one by morningstar in the small-cap growth category. let's get the lay of the land here when you look at small-cap versus big cap. we have an equity market at record highs or roundabout near record highs. is this a warning sign for bear market? or is this reversal what we have seen following the election with small caps outperforming big caps? >> we saw cyclicals and financials rally very hard. and it depends on policy and the administration. let's see what happens a tax form in the health care proposals winning their way through congress. we like small caps from a bottoms up approach. when i look out over the various growth areas, i find a lot of really interesting ideas in
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health care and technology as well as other areas of the economy. some ofwe'll talk about those picks but i want to follow-up on the point from an overall macro assessment. on approach.risk it but there are elements of the risk that have hated. there wasn't the same type of interest in the emerging market stocks. perhaps it is changing a little bit now. they are feeding a bit. >> for us, it reversed in q1 and we are ahead of the market by a similar amount to what we are down in cute or. we are seeing more secular growth driven stories as opposed to driven stories where people are making these bets on the economy and trying to get all in
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in particular exposure and maybe backed off on the macro exposure. oliver: you talked about moving towards getting some of that growth. it is that aversion to what you have seen in the market with volatility measures moving a little bit lower? you see correlations going down across the market? is that factoring into that? markets have been very highly correlated for the last couple of years. like us stock tickers competing against index funds and passive investing. we think that by differentiation , we can outperform the market and make a non-correlated bed. scarlet: you mentioned your a bottom-up investor so let's talk about the growth areas you see. >> we want to be on the same side as everybody. payers, consumers, the government.
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it is tricky to figure out what government policy might he and the health care plan when it comes out. if we find stocks that will benefit patients by providing their outcomes or provide lower-cost, we think we get a payers,from patients, and government if they are the payer in the end. oliver: choose your foundation flexing therapeutics. i see a big boost in foundation. why the stocksar rallied so much but understand about foundation, it is a majority shareholder. they came in and bought a majority of the company. for $50 a share. the stock is trading in the low 30's. we are waiting for an fda decision that will be in conjunction on the reimbursement side to get reimbursement. we think it can really accelerate testing volume. it has been a bit anemic which is why performance hasn't been
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as good as we had hoped. if this was just in testing, they have a phenomenal database that links doctors, patients, and pharmaceutical companies doing cancer research. it is a pretty exciting company. oliver: there is a drug scarlet: -- scarlet: there is a drug expected to be released in october. >> we do have a high degree of confidence given that these , this is aials company that treats millions of people year and a multibillion dollar market were they have a next at the time release version of a steroid typically injected to provide knee relief. as opposed to the days were standard injections might occur. still ahead, uber's president quits over controversy
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that the ridesharing company allegations of sexual harassment. this is bloomberg. ♪
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oliver: this is bloomberg markets. scarlet: let's get to the latest on the turmoil inside uber. quitting as president with less than a year on the job. we will get with start up reporter eric newcomer. what do we know about jeff jones decision? the reason he gave publicly versus what is likely behind some of this? >> he came in as the company's number two. he was the chief marketing officer at target. and then, you know, six-month later, the company was looking for a chief operating officer.
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clearly the new number two. that happened simultaneously. at the same time, uber has had all these scandals. it human resources, travis yelling at a driver, and jones said that it wasn't really the company that he thought he was joining. theer: is this an issue of statements that uber will be looking for a coo perhaps to rein in him in some sense? does that marginalize jones in any way? >> exactly. that was the concern. jones was in charge of the ridesharing organization which is the war business. but uber has longtime executives. rachel holt, andrew mcdonald. they had been running their regions. jones had not done a lot to reorganize or take control of an
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organization. presumably on top of them. insight do we have any of who he is talking to? >> we're trying to figure out right now. they are doing search committee on the board and looking all over the place for top candidates to bring in what travis described as up here. level executive to give the company some newfound credibility and also helped travis improve the culture. >> are you hearing anything about what this does to or in regards to the plans to go public if it is moving in that direction? >> out of think his moving closely in that direction right now. they have so much that needs to get sorted out the hand. i don't think this was a major
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blow to that pathway. whatst sort of indicates kind of turmoil is going on inside the company. jones had not played a super huge role in the company. that he left this way rather than he didn't have sort of this huge role. scarlet: got it. bloomberg tech startup reporter, thank you. is poised to oil resume an upward trend. talk about the commodity up next. this is bloomberg. ♪
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>> we have 30 minutes dedicated to fixed income. leverage has been building over the last year or so. are at ay, he yields 12 year low. >> the fed is behind the low. it lacks
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>> from bloomberg headquarters in midtown manhattan, commodity
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markets are closing in new york so let's get started with gold. investor sentiment improving after the dovish hike last week eased concern that there might be more than three interest-rate increases this year. teachers are about 1233, just under 1234. down about 1%ng at 48 24. above that $48 level. --evival of u.s. drilling is and this month, we saw prices to below $50 a barrel for the first time this year. oliver: it could be poised to resume the upward trend. joining us is commodity strategist mike. i like this idea of connecting oil and gold because there are some machinations to work through because they are important to the economy. i will pull up a chart real quick. tell us what you're looking at here.
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>> it has come back down. the thing about oil going down is a could help drive gold higher. it reduces fed tightening expectations. that is happening this year. , theloomberg index differences technology. we are creating more and more of it. >> is there a mechanism here? >> the fed has tightened and oil has not gone up. generally, it follows with inflation stuff. this is not the father's inflation cycle.
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it's a different situation and all of the supply, lack of consumption, and the u.s. is just a big reducer. it is not really stopping. it is accelerating a little bit with the new administration. scarlet: is oil driving gold or his goal driving oil? theis it as a response to federal reserve?>> the answer is yes . the drop is pushing gold higher because it is reducing expectations. gold is a closet currency. that is one thing that has really shifted, the dollar is down. and it declines tightening cycles. oliver: what have we learned about pairing the two next to each other? you have a chart that is looking at the ratio between the two. the yellow line here is gold versus oil.
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what can we learn from this? there is a range we have been stuck in. bring outimportant we to our viewers a very big difference. you basically get that spot return. you have to use the etf to track the futures. you the performance of the physical gold you can buy versus the etf. the bottom line is the difference which most people are quoting. it's important to see that difference in investment. >> gold future to crude oil future ratio as well. all the way back to 1983. the dotted line is 26. i take it that's a historical average. >> the historical averages close to the 15 year low.
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they could equal one ounce of gold. that is a paradigm shift. declining in 2015, janet yellen said it was transitory. it is staying lower and low versus gold. i think we can explain it more of a. i'm shift that crude oil is an example of technology. gold is the opposite. thus, the price creates higher. >> one thing that is often a , the relationship correlation of if they move together. what are the cross assets going to be. >> win oil spikes because there is an issue in the middle east,
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equities go down and risk is off. when oil goes down, it has issues with credit. the equity market has been going down with it. risks to u.s. producers. it is almost the opposite effect. scarlet: we saw them backpedal a bit on production cuts. it was producing less and what it had been before. what people had expected. do you expect to see that flow over to other countries? is, if youthing check the department of energy data, they have to cut more. and in increasing production
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trend will keep inventories high. i don't see how prices can do anything to stay the same or go lower. >> opec has to cut more. >> let's get you a check of the headlines. >> senate hearings today on president trump's nominee for the supreme court neil gorsuch are underway. we are minutes away from an opening statement. republicans are trying to get enough democratic support for the 60 vote threshold for the supreme court six. they're willing to eliminate the threshold and uses simple majority vote to confirm judge gorsuch. theresa may will begin the formal process to leave the european union next week.
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she will file divorce papers on march 29 that will launch complex negotiations to fit the u.k. need for a trade deal. afghanistan says it is killed more than 10,000 militants over the last year. toe than 40 of them are said have been senior taliban commanders. many was not say how killed. at 101, he was the world's oldest billionaire. the youngest and last surviving grandson of standard oil founder john b rockefeller, the nation's first billionaire. global news powered by more than 2600 journalists and 10 over 120 countries. i'm mark crumpton. this is bloomberg. isrlet: coming up, apple
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investing more in augmented reality technology. it may not be fully are but the company is betting can muzzle think it is a pretty cool when it links to the phone. we will take a look into that. this is bloomberg. ♪
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oliver: this is bloomberg markets. scarlet: we are 90 minutes to the close of trading. let's get a check on how things are going with julie hyman. julie: we are seeing a little bit of drop in the markets, particularly the s&p which is down a quarter of 1%. if you look at the imap and what groups are on the move.
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we have utilities and energy that are two of the worst performing financials. the larger drag. seeing a little bit of a drop in yields today. and putting pressure on energy stocks. couple of increasing stocks in the chip industry. jeffries is seeing market share gains. -- microdevices will gains gain some shares. shares up 6%.he nvidia getting positive commentary from bank of america merrill lynch and goldman sachs. the company has a solid position in gaming and the opportunity to expand in the auto market. we are at fertilizer makers. cbr partners mentioned positively by goldman sachs that are upgrading these stocks from buy to neutral. he's more constructive on the
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sentimental's for nitrogen right now. things unfolding in china. cvr partners is up 7.5%. we have broad weakness there. it doesn't look like a specific catalyst. worries in the retail industry. there are details under significant pressure. weakening in traffic. in the third week of march. all of that sort of negative commentary seeming to way on these retail markets. scarlet: thank you so much. oliver: turning to one of wall street's favorite stocks, tim cook maybe betting big on augmented reality saying that one day will be as much a part of us as eating three meals a day.
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bid.barked on an ambitious gurman.us now is mark he joins us from the san francisco bureau. top 10 story on the bloomberg today so a lot of people here caring about what is happening. does apple indicate what the next interesting project is going to be? what is behind the interest as far as investors are concerned. >> a few years ago, people thought it was the apple watch. there's been talk of self driving cars. the icloud services. so many new products, investors are itching for a new product and ar is going to enable that. why is tim cook sold on
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ar versus virtual-reality? virtual is very encompassing. this device, you put it on and watch movies, play games, but it really interrupts your life. it is a commercial type of environment. we see it in offices, education, medical industry. , i thought on appear glasses and i can look at you and these glasses will tell me everything about you. if there's an arafat tells me that information. but at the same time i see the real you and everything else in my life. it is not as immersive and sort of like a smart watch. theer: you've talked about actual size of the industry
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here. they are products will surge 80% according to research of global market in right. $165 billion over the next seven years. what form will the product take? is ank of a are right now ongoing thing where it's an app that you put on your phone that changes what you are looking at. will there be separate devices for augmented reality sold separately? >> apple is working on a pair of augmented reality glasses. it wouldn't be so immersive. it would be the size of a normal pair of eyeglasses. there is functionality where he .an beam content you see the information pointed into your eyeballs. google glass was $1500. the glasses were very flimsy.
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scarlet: who is part of the apple ar team? what are they devoting in terms of resources and man power to the ar project? are they poaching people from outside the company? this is a very significant undertaking. apple is bringing the best of the best from outside in to work on the ar product. one of the people that was really instrumental in the design of the apple watch is one of the best design smart watches to leave the hardware design for the apple ar products. they hired an executive that ran technology innovation at dolby labs. known for audio, video, and next generation technology. he runs the entire group. lucasfilm to run the audio side of the project. outside, these people
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created the special effects and 3-d animations used in movies like iron man, lord of the rings, the hobbit. they are hiring the best. they made some acquisitions as well but my question is that hiring well-known people from outside the company and making tactical acquisitions does not mean that this will actually happen as planned. your reporting indicated apple did the same thing when it came to autonomous vehicles. apple pulled the plug on that effort as well. >> they spent one to two years to take on tesla. the ar glasses were getting further closer to that, actually. the car project, they pulled the plug on the hardware side of that. form, these glasses have seen further ahead. this is a real opportunity.
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it is probably much easier for a consumer electronics company like apple to release and ar pair of glasses and building a whole car than an automobile supply chain. oliver: apple's next big thing, augmented reality. thanks so much. it is time for the bloomberg business flash, a look at the biggest stories in the news right now. minister isnce optimistic that the you can european union will find concessions on trade as the brexit looks to be march 29. the report today in brussels. >> i have had the chance to speak with the chancellor about this. the u.k. andhat the eu, looking at the issue from different perspectives, it is a good spirit of collaboration. a state bailout of the troubled banks are progressing.
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wells fargo says credit card applications dropped 55% last month. -- biggest decline when since september when a scandal over fake accounts arrested. it marks the sixth straight month of declines at wells fargo. the bank is accused of opening 2 million accounts without permission. the schedule -- scandal has cost wells fargo $2 million so far. looking into the market after eight potential offer for cotton. i was to win antitrust approval. by divesting seed and pesticide properties. if an offer is accepted, it will be the first time the 150-year-old council maker has provided seeds and crops. that is the business flash update. oliver: how is your bracket doing? coming up on thursday, the march
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madness tournament enters the sweet 16. we will take a look at bloomberg brackets for a cause. it pits business leaders against each other to see how the competitors are doing after a few upsets already. of course, all for charity. and we are monitoring the house intelligence committee with fbi director james comey, responding to the tweet that said, he refused to deny that he briefed obama on flynn. comey saying, it wasn't our intention to say that today. this is bloomberg. >> looking forward, what -- ♪
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oliver: this is bloomberg markets. scarlet: bloomberg brought together a group of titans from the business and finance will to take their best shot of filling out the perfect march madness bracket all in the name of charity. let's take a look at how everyone is faring.
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bloomberg's new york bureau chief. we had a major upset which knocked a lot of people out of contention. >> and unbelievable night in college basketball. duke loses and duke was a 2 seed. , 38in our humble bracket competitors, 16 of them had duke going all the way. that knocked out a fair number of people. that followed the overall number one seed villanova going out on saturday. was telling someone earlier, i got an enough from one of them late that are day night saying hattaway look at the who else has who winning? he was trying to game out where he was going to stand. and sunday happened in duke went out. it rattled some people. oliver: let's answer his question and jump into the terminal. bracket go brings up your bracket.
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go to celebrities. it you can see through each round, we are basically getting the most recent sport. you see the los angeles lakers president and part owner who has bob steele. there is definitely some leaders taking the board here but plenty to get caught up. >> and jeannie and bob had duke winning it all. and it's just sort of how the term and plays out. talk to me next monday and we will have a much better sense. for those guys, they are not going to be running this year. >> i feel bad for pointing them out. i will look at the website right now because it is also available online and you can see the red on the diagram right now.
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basically, games she's not going to be able to win. theseyou look at some of top players right now and our bracket challenge, there are a couple of people that have a chance to win. that runs bases, tom farley of the new york stock exchange, they all have non-duke winners. they have arizona, unc, and gonzaga. they are still very much in it. they don't look like they are doing so well right now. they have a lot of room to run. we should mention that the winnings go to their charity of choice. it would be bob steele. michael bloomberg also fill that a bracket as well. instance, from the clinton
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foundation as well. it do you have a foundation or a charity you are donating to? pony up, i just go on the the brkt bloomberg. i have ucla winning at all which is a bit of a dark horse. we will see how it plays out. it looks like it was going kind of according to -- not a lot of surprises up until this weekend and then these two guys get knocked off really changing it. scarlet: jason kelly, we look forward to the next update. the bloomberg bureau chief. you can follow along on bloomberg.com/brackets or brkt go. oliver: this is bloomberg. ♪
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. .
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i could not even attempt to do this without louise, my wife of more than 20 years. the sacrifices she has made and
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her open and giving heart leave e. in aw i love you so much. we started off in a place very different from this one. a tiny apartment and little to show for it. when louise's mother first came to visit, she was concerned by the conditions, understandably. as i headed out the door to work, i will never forget her whispering to her daughter in a voice intended just about enough for me to hear, are you sure he is really a lawyer? [laughter] to my teenage daughters watching out west, bathing chickens for the county fair, devising ways to keep our determined pet goat
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out of the garden, building a semi-functional hoverboard for science fair and driving eight hours to a wyoming snowstorm with high school debaters in the back are giving all the way, these are just a few of my very favorite memories. i love you girls impossibly. family, here and gather,olorado, when we it is dozens of us. we hold different political and religious views, but we are united in our love and between the family pranks and pack of children running rampant, whoever is hosting is usually left with at least one drywall repair. grandparents,and they are no longer with us but there's no question on whose shoulders i stand. my mom was one of the first women graduates of the university of colorado law school and as first female
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district attorney in denver, she had a program to pursue deadbeat dads. getidea of day care meant i to spend a day wandering the halls. she taught me the headlines are fleeting and courage lasts. lifed taught me success in has very little to do with success. kindness, he showed me is a great virtue. he showed me there are few places closer to god than walking in the wilderness, waiting in a trout stream. even if it is an awful long drive home with the family dog after he encounters a skunk. to my grandparents, as a boy, i could ride my bike's to my home -- to their homes. they were a huge influence. sure he got an education and became a doctor. even after he passed away, i
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heard stories for years from grateful patients who recall him kneeling by their bedside so they might pray together. grandmother, grew up on a nebraska farm where an ice box was not something you plugged into the wall but something you lowered into the ground. for seven children, she never stopped moving and never stopped loving. my dad father made his way through college working on denver' cars. he practiced law through the great depression and taught me lawyers exist to help people with their problems, not the other way around. his wife came from a family of pioneers. she loved to fish and she's the one who taught me how to tie a fly. thank my friends, so many of whom are here, liberals, conservatives, and independents from all backgrounds and
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beliefs. many have written to this committee on my behalf and i am truly touched by their support. they've been there for me always. not least when we recently lost my uncle jack, a hero of mine. and a lifelong episcopal priest. he gave the benediction when i took the oath as a judge 11 years ago. i confess i was hoping he might offer a similar prayer soon. as it is, i know he's smiling. want to thank my fellow judges across the country. judging is sometimes a lonely and hard job, but i have seen women worken and with courage and collegiality, independence, and integrity. their work helps make real the constitution and laws of the united states for all of us. , want to thank my legal euros
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byron white, my mentor and a product of the west. he modeled judicial courage and followed the law wherever it took him without fear or favor to anyone. andhero, rhodes scholar, highest paid nfl football player of his day. in colorado today, there is god, there's john elway, and there's peyton manning. in my childhood, there is god and byron white. fortune to clerk for justice kennedy. he showed me justice can disagree without being disagreeable and everyone who comes to court deserves respect. that case is not just a number or a name, but a life story. and a human being with equal dignity to my own. mentor,scalia was a too. he reminded us that words matter. is to follow the
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words that are in the law, not to replace them with those that are not. his colleagues cherished his great humor. we did not agree on everything. justice fished with the enthusiasm of a new yorker. not -- he thought the harder he slapped the line on the water, the more the fish would love it. finally, there's justice jackson. he wrote so quickly that everyone could understand his decisions. advocatewas a fierce for his client when he was a lawyer, he reminded us when you become a judge commie fiercely defend only one client, the law. sose judges taught me about on law and the importance of an independent judiciary, how hard our forebears worked to win these things and how easy they are to lose. how each generation must take
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its turn carrying the baton or watch it fall. mr. chairman, these days, we describedhear judges as politicians in robes. if i thought that were true, i would hang up the robe. thinkuth is i just don't that is what life in the law is about. as a lawyer working in the trial court trenches, i saw judges and jurists while imperfect of a cases i hard for the put to them. for a judge for more than decade, i've watched my colleagues spend long days worrying over cases. sometimes the answers we reach are not the ones we personally prefer. sometimes the answers follow us home at night and keep us up. the answers we reach are the ones we believe the law requires and for all its imperfections, i
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believe the rule of law in this nation truly is a wonder and it is no wonder it is the envy of the world. wecourse, once in a while judges do disagree, but our disagreements are not about politics, but about laws demand. let me offer an example. the first case i wrote as a judge to reach the supreme court divided 524. withustices confirmed sotomayor with justices stephen and leah in dissent. that's a lineup that some might think unusual but it is exactly the sort of thing that happens quietly day in and day out at the united states supreme court and courts across the country. wonder if people realize that justices thomas and sotomayor agree 60% of the time or justices scalia and breyer agreed even more often than that , all in the very toughest cases
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in our entire legal system. here's another example about my record. the last decade, i've participated in more than 2700 appeals. often, these cases are hard. only about 5% of federal lawsuits make their way to the court of appeals. -- i worked with judges appointed by president obama all the way back to president johnson and we hear cases from six different states covering two time zones and 20% of the continental united states. in the west, we listen to one other -- respectfully. cherishate, we different points of view and we see consensus whenever we can. my law clerks tell me 97% of those 2700 cases i've decided were decided unanimously. that i have been in the majority 99% of the time.
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that is my record and that's how we do things in the west. of course, i make my share of mistakes, to. as my daughter is never tired of reminded me, putting on a robe doesn't make me any smarter. i will never forget my first day on the job, carrying a pile of briefs up to the bench, i tripped on the hem of my robe and just about everything went flying. troublesome as a robe can be, the robe does mean something to me and not just that i can hide the coffee stains on my shirt. putting on a robe reminds us judges that it's time to lose our egos and open our minds. of thees as a reminder modest station we are meant to occupy in a democracy. places, judges were scarlet or silk. we judges why our own plane,
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,lack robes and i can attest the standard choir outfit at the local uniform supply store is a pretty good deal. ours is a judiciary of honest, black polyester. , i'mi put on the robe reminded that under our constitution, the people's representatives to make new laws , for the executive to ensure those laws are faithfully executed and for neutral and independent judges to apply the law, judges were secret legislators declaring not with the law is looked at would like it to be, the very idea of a government by the people and for the people would be at risk. those who came before the court would live in fear, never sure exactly what the law requires of them except for the judges will. as alexander hamilton said, liberty can have nothing to fear
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from judges that apply the law, but liberty has everything to fear if judges try to legislate, too. in my decade on the bench, i've tried to treat all who come before me with respect and poord equal right to the and the rich. i've decided cases for native american seeking to protect tribal lands. ensuredthat compensation for victims of a large nuclear waste pollution problem produced by corporations in colorado. i've ruled for disabled students, prisoners, for the allegingfor workers civil rights violations and undocumented immigrants. sometimes, i've ruled against such persons. my decisions have never reflected a judgment about the people before me, only a judgment about the law, the fact in each particular case. a good judge can promise no more than that and a good judge
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should guarantee no less. for a judge who likes every judgee, it a bad searching for policy results he prefers rather than the ones law compels. as a student many years ago, i found myself walking through the old granary burial ground in washington. it is where all revere, john hancock and many of our founders are buried. came across the tombstone of a lawyer and judge who today is largely forgotten. as we are all destined to be short enough. was increased sumner. written on his tombstone was this description of the man. as a lawyer, he was faithful and able. as a judge, patient, impartial, decisive. in private life, he was in
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affectionate and mild. in public life, he was dignified and firm. were allayed by the correctness of his conduct. colony was silenced by the weight of his virtues and rancor softened by the amenity of his manners. those words stick with me. i stick them -- i keep them on my desk. they served for me as a daily reminder of the laws of integrity that a useful life can with the its service hard work it takes and an encouragement of good habits when i fail and when i falter. , i couldd of it all ask for nothing more than to be described as he was and, if confirmed, i pledge to you i will do everything in my power to be that man.
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>> thank you, judge. scarlet: that was president trump's supreme court pick speaking before the senate judiciary committee. he's currently an american federal appellate judge on the u.s. court of appeals for the 10th circuit. he comes from the state of colorado with a very personal speech at the beginning when he was thanking his family, his parents, his wife, his promised to --he how did he put it -- a secret legislator. he says he's learned the importance of an independent judiciary. going through his biggest inspirations from judicial history. coming up, we will switch gears and talk about new york city hotspots in real estate. we will navigate bloomberg's interactive real estate map which you can find on line. u.s. stocks are once again in retreat, heading for a third straight loss. ultimately, utilities and energy
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shares are weighing on the market the most. the dow down two basis points today. this is bloomberg. ♪
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scarlet: this is bloomberg markets. i'm scarlet fu. oliver: i'm oliver renick. scarlet: a few blocks may make all the difference in the price you pay for a home in manhattan or brooklyn. our real estate reporter for bloomberg news. you are focused on the tipping point, the amount of time it would take for renting to be equal or higher than the cost of buying a comparable home. tell us what you were surprised to find out. interestingone was
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because it varied so much by neighborhood. but what it looked at was how many years would it take for the cost of renting, including renters insurance, brokers fees the cost ofexceed buying. they computed this data point and in some neighborhoods like soho, it takes 31 years of renting. you might as well just hang out. just a few blocks to the east, and the east village, it's just under four years. so you see the difference between the neighborhoods and the cost of real estate. oliver: let's take a look at that graphic again because it's really cool. you guys are applying it wonderfully here. you can see the median resale price and right next to it,
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obviously a big shift when you go to the east village area. this is the median resale price. than the newt development which has been stratospheric. resalelook at the median price in a lot of places, it has gone down. a lot of places, it has gone up. one of the interesting points we looked at was the interest rate discount. kind of shows the discounts sellers had to offer to strike a deal. in some of the more costly deals, the discount was greater. there was a lot of inventory there and the greater the price, the greater the seller had to come down. scarlet: inventory makes all the difference in the world. the still it's got a lot of new development as of late. some: soho has
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particularly expensive real estate. some of the east village offerings, some of the smaller units might be a little cheaper. if you look at the median price versus resales, the difference is 700,000, something new yorkers might consider approachable. oliver: there's a big gap emerging between new homes and the ones being shown right now. still ahead, small banks, big gains -- we are tracking regional lenders in today's options insight. this is bloomberg. ♪
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oliver: this is bloomberg markets. i'm oliver renick. scarlet: i'm scarlet fu. time for options insight with julie hyman. julie: joining me is an equity at the proprietary trading arm of interactive brokers. thank you for coming in. it is a relatively benign and quiet day, so i wanted to dive right into your trade. it has to do with the financials and you're looking at the differential between the regional banking etf and the xls which is the overall financial etf, both have done quite well since the election. steve: both had done very well after the election, they both shot up. outperformed, but since the turn of the new year, they've been a bit more sideways.
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been ans underperformance, so they have caught up. scarlet: what's the next --julie: what is the next move in the financials, particularly with the subsectors here? steve: the trade has a pullback to it. it was very telling on wednesday. the financials failed to move along with the rest of the market. raised rates, one thing to think about is you just raised the cost of their biggest input, which is money and one of the biggest guides to profitability is the shape of the yield curve and the yield curve did not change shape. may have backdrops some caution in the financials. and bigger banks may be exposed that because they don't have the larger revenue sources.
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they are tied to the actual lending and borrowing of money. they are not as geographically diverse. you are talking about a where they are in the position to benefit more and be more exposed to risk. they just don't have that battleship mentality. julie: you are looking for downside but not unlimited downside. steve: i don't want to speculate to heavily but it's slightly out puts versus, the 55 the 55.5 puts. that is a pullback kind of trade where the input can be used to offset some of the cost, but it is not a big, outright gamble.
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it's more of a slight pullback. julie: the xls is more heavily weighted, but berkshire hathaway is in there as well. steve: we don't think of it this way but berkshire halfway is 11% of the index. you have very heavy concentration at the top of xls in names that are not strictly as exposed to this stuff. thank you for coming in. scarlet: thank you, julie. we have much more coming up. this is bloomberg. ♪
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mark: i'm mark crumpton. time now for first word news. senate hearings began on president trump as nominee for the supreme court, judge neil gorsuch. republicans are trying to get
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enough democratic support for the 60 vote threshold. if not, they have indicated they are willing to donate the threshold and use a simple majority vote to confirm him. rish premise or theresa may will begin the formal brexit process on march 29. a spokesman says the u.k. wants talks on leaving the european union to begin promptly. meanwhile, she does not intend to call an early election. nuven video from the associated press appears to show the moments when a suspected islamic extremist grabbed a soldier from behind in paris last weekend and a brief stand -- standoff that shut down the airport in the french capital. the attacker was shot and killed within minutes. authorities say he had a long criminal record of drug and robbery offenses. no one at the airport was wounded. the leaders of germany and japan have called for a conservative -- concerted effort to defend

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